In dialogue with Channel Ethe consumer and payments specialist, Guillermo Barberoanalyzed the current behavior of credit cards in Argentina and warned of structural changes in family financing.
barber explained that the increasing use of credit cards is due to a combination of greater technological access and financial needs. As he pointed out, the proliferation of digital wallets has broken down one of the sector’s historical barriers: the lack of portability of plastic. “Now we can carry our cards in the phone and it is not even necessary to have the plastic with us” he explained. barberthis technological change”It was a great incentive to use cards that had previously been forgotten“.
Digital portability and the financing leap
The respondent explained that loans began to grow sharply from 2024 because inflation slowdowns freed up borders: “The first financial resource people turn to is the credit card“, he noted. By analyzing cards and personal loans together, he found that family financing has increased by around 130% in real terms over the last year and a half.
However, barber marked a current turning point: “The model is reaching its limits and growth is running out“In his opinion, the main cause is the drastic shortening of refund periods from July 2024.”The supply of credit has decreased within months and as a result the amount that can be borrowed has become smaller“, he pointed out. With shorter installments, the impact on disposable income is greater and limits new financing.
Debts, promotions and the local “spare wheel”
When asked whether the increase in debt is a response to the need to make ends meet or to bank incentives, barber He noted that both factors coexist. “It is becoming increasingly difficult to balance a family budget“he explained, due to the increase in tariffs, fuel and public services. Salaries, he added, did not accompany these increases.
The expert claimed that the card acts as a flexible mechanism for organizing household expenses. He described a common case: a household agreement that requires cash payment requires compensation by paying maintenance in installments. “The card is a spare wheel that is always ready for use“He said. This means, he emphasized, not necessarily that food is purchased in installments due to lack of money, but because other expenses that cannot be postponed do not allow deferment of payment.”
The widespread use of bank promotions and discounts also increases the attractiveness of financing. Given these alternatives barber concluded that the card will continue to play a central role for households, but its growth will depend on a renewed extension of credit terms.
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